Overdrawing TDO's bank account
TDO Enterprises fabricates the chassis boxes for computers. It always seemed that there wasn't enough money in the bank to pay the bills. A quick look at the aging of accounts receivable revealed that customers paid on average two weeks after the time stated in the terms of sale.
Rather than dip into its line of credit again, TDO's solution was to mount an aggressive collection campaign. The company used its accounts receivable system to monitor progress toward getting and keeping customers current.
Within the space of two months, TDO's bank account balance had risen to a point where it could pay its bills regularly without having to draw on its credit line.
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